Of Permanent Value Summary


#1

Originally published at: https://blog.12min.com/of-permanent-value-summary/

The Story of Warren Buffett


The bottom line is that Warren Buffett is the most prominent middle-class multi-billionaire.

After years of uncertainty, Warren Buffett finally reveals his “Buy low, don’t sell” secret.

Who Should Read "Of Permanent Value"? And Why?

Who stops you from getting there? – As he was fascinated by money, you can make your presence felt with the tools you have at your disposal. One of them is time, the other one creativity.

These free instruments are indeed a profit-making machine, it all depends on how you use them. They are particularly useful when combined with financial creativity and open mindset.

Your highest priority describes your personally and professionally. In either case, time allocated to investment is not time lost, because it alludes to all aspects of human development.

Generally speaking, this classic is a perfect fit for stockbrokers, financiers, investors, inventors, innovators, students, and all other people with a decision-making capacity.

About Andrew Kilpatrick

In 1994 Andrew Kilpatrick published the first edition of this book by himself.

Four years later, in 1998, Andrew produced a new McGraw-Hill. Other than being an author, he was also a U.S. Naval officer while serving in the Peace Corps.

"Of Permanent Value Summary"

Many factors indicate, including Warren Buffett’s testimony that his encounter with “finance” started soon after the 1929 – Economic Crisis. He was stunned by the stock market crash" in those days and embarked on a journey to figure out, what happened precisely and what caused the economic collapse.

It’s equally important to mention that, Buffett bought his first stock when he was a just a young boy – 11 years old. The pull for “playing” on the stock market awoke an intention, which later transformed into a “full-time job,” to learn as much as he can from the most experienced investors in years to come.

Let’s take a step back; the irony is that Warren’s father was a stock salesman in those days. Despite the early signs of failure, and the implication to remain careful with the variability of stocks, young Warren’s future was already forged into decision-maker, even before he made his impact on the world’s economy.

One thing led to another, and Buffet became one of the wealthiest persons on the planet. As an illustration of his passion towards finance, the author presents the “metal moneychanger” – Warren’s favorite toy.

The little boy was all about making money and analyzing the risk-benefit ratio of every investment. In spite of the economically weakened America, he found the strength to undergo a series of money-making processes, which will ultimately lead to success.

Unlike brokers, financiers, and other financial experts, he was not motivated by the idea of becoming rich. You would probably disagree right away, but take a moment to consider all options.

Due to the upcoming crisis in the 1970s, Buffet yet again stood firm with the theories he realized earlier. Such perspective enabled him, to deal with all the mess, economic fluctuations, wars, reforms, law enforcement, etc.

Now we go a couple of decades backward, in the past, discussing Warren’s childhood and his Coca-Cola endeavor. Even personalities like Warren itself, are entitled to be a little generous, especially as kids.

The first ever business journey that he embarked upon, was doing a favor for a fellow, who’ll later become one of the Coca-Cola’s top shareholders.

Although, this looks like an accurate biography of the world’s greatest investor, Andrew Kilpatrick kind of disagrees with this notion. According to him, the ability to surpass all the challenges is more like a life-advice than a biography.

The book’s genre is not so important; the eye-opening element consisting of tips conveyed in this classic about the world’s wealthiest, investor Warren Buffett, surely is significant – on the other hand.

In other words, the message shared takes the driving seat! In the same manner, like Warren, Kilpatrick contradicts the basic chronology order, presented in most portraits, and showcases a new 890 pages, filled with a mind-blowing, easy-to-read content.

The content doesn’t follow any particular order because, in that way, there are no disruptions in adding a dose of magic in this detailed and satisfying life journey. Filled with plenty of insights, the readers will be utmostly thrilled to take a peek into Buffett’s life.

We don’t want to deprive anyone of the opportunity to read this classic, even though it’s best equipped for people involved in finances.

Key Lessons from “Of Permanent Value”

1. Battling down old-fashioned concepts 2. The birth of a new little genius 3. Billionaire lifestyle/ or not

Battling down old-fashioned concepts

As a consequence of his knowledge-thirsty approach, Warren Buffett's reputation became a synonym for wealth.

Perhaps, his biggest strength was, that he disregarded and neglected all those conventional methods and belief systems.

The birth of a new little genius

Only six years old, Warren came up with an idea, a funny one by today’s standards, but effective in the digital time as well.

He purchased a six-pack of Coke each day, and by using the power of retail, he used to sell them for five cents a bottle, leading to 20% returns with minimum risk.

At the end of the day, instead of spending money, little Warren was earning money. The 20% returns, became his signature tool, during further investments.

Billionaire lifestyle/ or not

Even though almost every person in the world is aware of Warren Buffett’ financial situation, the one thing nobody knows is his, casual appearance.

He doesn’t own any lavish offices or expensive suits; he’s one of those who put more emphasis on playing with money, rather than using the money for personal pleasures.

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"Of Permanent Value" Quotes

[bctt tweet="One problem with the Buffett/Berkshire ’Buy Low, Don’t Sell’ story is that it seems improbable. People are skeptical because most investors have trouble just treading water. Therefore, it’s hard to relate to making millions upon millions of dollars. Billions of dollars." username="get12min"]

[bctt tweet=“He responds to the world by examining it thoroughly and in a positive and witty way. Those who have worked with him describe him as almost unfailingly upbeat and supportive, practically never testy. He works hard. And yet he says his work is not work, but fun. Fun to Buffett is studying the world of business through voracious reading.” username=“get12min”]

[bctt tweet=“Buffett does his own taxes, saying they are really quite simple.” username=“get12min”]

[bctt tweet=“Buffett’s easy manner and down-home ways mask a highly sophisticated man.” username=“get12min”]

[bctt tweet=“Traditional wisdom can be long on tradition and short on wisdom.” username=“get12min”]

Our Critical Review

"Of Permanent Value" is not an all-encompassing adventure, it strictly points out what we must do, in the money-pursuit process.

It underlines both financial motivation, and vision as the greatest assets in reaching the top.